The Marginal Income Effect of Education on Happiness: Estimating the Direct and Indirect Effects of Compulsory Schooling on Well-Being in Australia

Nattavudh Powdthavee, Warn Nuarpear Lekfuangfu and Mark Wooden

Melbourne Institute Working Paper Series from Melbourne Institute of Applied Economic and Social Research, The University of Melbourne

Abstract: Many economists and educators favour public support for education on the premise that education imporves the overall well-being of citizens. However, little is known about the casual pathwasy through which education shapes people's subjective well-being (SWB). This paper explores the direct and indirect well-being effects of extra schooling induced through compulsory schooling laws in Australia. We find the net effect of schooling on later SWB to be positive, though this effect is larger and statistically more robust for men than for women. We then show that the compulsory schooling effect on male's SWB is indirect and is mediated through income.

Keywords: Schooling; indirect effect; well-being; mental health; windfall income; HILDA survey (search for similar items in EconPapers)
JEL-codes: C36 I20 I32 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2013-04
New Economics Papers: this item is included in nep-hap and nep-ltv
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

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http://melbourneinstitute.unimelb.edu.au/downloads ... series/wp2013n16.pdf (application/pdf)

Related works:
Working Paper: The Marginal Income Effect of Education on Happiness: Estimating the Direct and Indirect Effects of Compulsory Schooling on Well-Being in Australia (2013)
Working Paper: The marginal income effect of education on happiness: estimating the direct and indirect effects of compulsory schooling on well-being in Australia (2013)
Working Paper: The Marginal Income Effect of Education on Happiness: Estimating the Direct and Indirect Effects of Compulsory Schooling on Well-Being in Australia (2013)
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